Friday, October 31, 2014

Interest rates and how that will effect the housing market.

Interest Rates and Housing Prices

Rates are still holding at historically low rates.  3.5% VA and FHA loans for 30 year fixed rate loans, 3.75% for conventional 30 year and 3.125% for 15 year loans.  Adjustable rate loans are actually higher in the 3.75% range.

The federal reserve has stopped their monthly huge asset purchases to hold down rates and help the economy.  They feel that the economy is strong enough to work on it's own in the "FREE" market.  What will this do to loan costs in the future.  Expect not much till the spring but there is a good case being made that rates are way to low and should rise after the Mid-term elections and the start of 2015.  Last quarter GNP rose by 3.5% and has risen all but two months of the last two years which says the market is ready for higher rates and less help from the government.

House prices in the Grand lake area are steady but in some cases still not as high as they were be fore the financial crises of 6-7 years ago.  Sales units are up around 5% and the average price of homes sold is slightly higher than a year ago.  Our biggest problem on the lake is homes in the $200,000 to $400,000 range that have not been updated in the last ten years and homeowners are disappointed that they may not be worth what they were valued at when they bought them.

Buyers expect deep discounts for dated homes or they expect the homes to have all the latest amenities if the seller expects top dollar. 

For more information on Grand Lake real estate call "SHORTY" at 918-218-6011.

Wayne "SHORTY" Short
RE/MAX Grand Lake

Monday, October 27, 2014

Changes to U.S. Houseing Regulations, major victory fro homeowners.

Breaking/Good News for Housing Industry 
Posted 10/21/14 
Two monumental decisions in U.S. housing regulations this week are major victories for homebuyers – and the housing industry at large.

For starters, the 
final qualified residential mortgage, or QRM, rule eliminates the highly controversial requirement of a specific down payment amount, bringing the rule in line with the Consumer Financial Protection Bureau’s qualified mortgage, or QM, rule. The latter was created to protect borrowers from predatory lending practices.
Another victory for housing: Fannie Mae and Freddie Mac are releasing new guidelines that will allow borrowers with lackluster credit profiles to obtain loans with a down payment as low as 3 percent by considering “compensating factors.” Federal Housing Finance Agency Director Mel Watt, who oversees both Fannie and Freddie, announced the government’s new plan in hopes of quelling lenders’ fears when the government-backed loans they sell go sour.

Additionally, Fannie and Freddie also plan to loosen demands on lenders to buy back defaulted mortgages, creating more stability, confidence and clarity for the lending industry.

RE/MAX CEO Margaret Kelly applauded the announcements, which ultimately help first-time homebuyers, as well as those who earn lower incomes, to more easily obtain government-backed loans.
“This is great news for our industry, and it’s a welcomed change we’ve been advocating at RE/MAX,” Kelly says. “Taking a measured but less stringent approach to lending creates more stable housing conditions and, most importantly, opens the doors to homeownership for qualified, willing homebuyers who’ve been sidelined in the wake of the downturn.”
Read more about these key housing developments:
NAR: QRM Mortgage Rule Could Ease Credit for ConsumersLos Angeles Times: Regulator unveils plan to spur lending by Fannie, FreddieNew York Times: Federal Housing Finance Agency Unveils Plan to Loosen Rules on Mortgages

Friday, October 3, 2014

Grand Lake, Oklahome Real Esate Update: October 1, 2014

Grand Lake, OK area Real Estate update

October 1st, 2014


Good News:  The Absorption rate (time it would take to sell all homes currently on the market) fell again in September and was -22.20% less than this time one year ago.  The number of active listings on the market was down -16% from the same time a year ago.  YTD there are 2427 active listings in the area compared to 2588 for the same period in 2013.  This is a -6.2% lower amount.


YTD the average list price of all properties on the market was up 2.59% from a year ago to $226,904 and the average YTD sold price was up 2.27% from a year ago to $172,048.  Owners and Realtors continue to price listings much higher than they are selling for.  During March sales averaged 91% of last list price.  In September of 2014 sales averaged a little over 86% of list price.  This large difference is influenced heavily by the price differential of waterfront luxury homes.

Average days on the market in September, 2014 were less than September, 2013 by -12.32% and down to 185 days (still ½ a year).  YTD the average days on the market increased 6 days from last year’s 172 days.

Good News:  YTD, 680 residential homes have sold in the Grand Lake area compared to 623 homes in 2013.  This is a 9.1% increase in total sales.

More good news:  The October Jobless rate fell to 5.9%.  30 Year fixed rate loans are still in the mid 3% range and should continue to hold through the November elections